New Found Gold Completes Queensway Gold Project Expansion; Grants Restricted Share Units

Rhea-AI Summary

New Found Gold (NYSE American: NFGC) completed its acquisition of a 100% interest in certain mineral claims from Exploits Discovery, expanding the Queensway Gold Project by up to 31% to 230,225 hectares on December 5, 2025. The Claims adjoin Queensway and consolidate over 110 kilometres of strike along the Appleton and JBP fault zones. Consideration included issuance of 2,821,556 common shares, a 1.0% NSR royalty (with an option to buy 0.5% for CDN$750,000), and contingent issuance of 725,543 shares pending a court determination. The company also granted 300,000 restricted share units to a director under its 5% rolling plan (vesting 1/3 yearly). Technical disclosure was approved by Qualified Person Melissa Render, P.Geo.

Positive

• Project area expanded by 31% to 230,225 hectares
• Consolidated over 110 km of strike along two major fault zones

Negative

• Issued 2,821,556 shares as acquisition consideration
• Possible contingent issuance of 725,543 shares pending court determination
• Granted 1.0% NSR royalty with option to repurchase 0.5% for CDN$750,000
• Granted 300,000 RSUs to a director (vesting over 3 years)

Key Figures

Project size 230,225 hectares Queensway Gold Project total area after Claims acquisition

Project expansion 31% Increase in Queensway Project size from acquired Claims

Share payment 2,821,556 shares Shares issued to Exploits as consideration for Claims

Contingent shares 725,543 shares Additional shares to be issued after positive court determination

NSR Royalty 1.0% Net smelter returns royalty granted to Exploits on certain claims

NSR buyback option 0.5% for CDN$750,000 Right to repurchase half of the NSR Royalty within three years

RSU grant 300,000 RSUs Restricted share units granted to a director under 5% rolling plan

Strike length over 110 kilometres Strike along Appleton and JBP fault zones after expansion

Market Reality Check

$3.00 Last Close

Volume Volume 1,127,085 is below the 20-day average of 1,504,553, suggesting a relatively muted trading response pre-news. normal

Technical Price at $3.00 is trading above the 200-day MA of $1.72, indicating a pre-existing upward trend before this expansion news.

Peers on Argus

Peers in the Gold industry showed mixed moves, with names like GROY up 4.29% and DC down 1.9%, while NFGC was up 0.67%, pointing to a more stock-specific reaction than a uniform sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 01	Drill results	Positive	+18.3%	High-grade near-surface gold intercepts from Keats grade control drilling.
Nov 28	Project financing	Positive	+5.7%	Engaged project finance advisor referencing PEA and Phase 1 capex plans.
Nov 19	Drilling update	Positive	+2.3%	Infill and expansion drilling at K2 and Jackpot with high-grade intercepts.
Nov 13	Ownership change	Neutral	-4.7%	Eric Sprott’s holdings updated following Maritime plan of arrangement.
Nov 13	M&A transaction	Positive	-4.7%	Closing Maritime Resources acquisition and creation of combined gold producer.

Pattern Detected

Recent operational and project updates have generally seen positive price alignment, while larger ownership/transactional changes showed negative divergence.

Recent Company History

This announcement extends a busy period for New Found Gold. In November–December 2025, the company reported multiple high‑grade drill results at Queensway, engaged a project finance advisor referencing a $155 million Phase 1 capex, and advanced infill and expansion drilling. Corporate developments included closing the Maritime Resources acquisition and an ownership update from Eric Sprott. Those events produced both strong gains (up to 18.26%) and selloffs (around -4.65%), indicating varied market responses to technical versus corporate catalysts.

Market Pulse Summary

This announcement expands Queensway to 230,225 hectares, consolidating over 110 kilometres of strike along key fault zones and adding exploration upside. Consideration includes 2,821,556 shares, contingent shares, and a 1.0% NSR royalty with a partial buyback option for CDN$750,000. A separate grant of 300,000 RSUs adds share-based compensation. Investors may track future drill results on the new ground and any exercise of the NSR buyback option.

Key Terms

net smelter returns royalty financial

"granted to Exploits a 1.0% net smelter returns royalty on certain of the mineral claims"

A net smelter returns (NSR) royalty is a contractual right to receive a percentage of the revenue generated from mined minerals after the ore has been processed and sold, with common deductions for refining, smelting and transport costs. Think of it like a landlord taking a slice of a tenant’s monthly sales after the tenant pays basic operating bills. Investors care because an NSR affects the future cash flow and valuation of a mining project and shifts some upside and downside risk away from the operator to the royalty holder.

National Instrument 43-101 regulatory

"a Qualified Person as defined under National Instrument 43-101."

National Instrument 43-101 is a set of rules and guidelines that govern how mineral exploration and mining companies must report information about their projects. It ensures that the details shared with investors are accurate, consistent, and reliable—similar to how a detailed, verified blueprint ensures a building’s safety. This helps investors make informed decisions based on trustworthy information about a company's mineral resources.

Qualified Person regulatory

"and a Qualified Person as defined under National Instrument 43-101."

A qualified person is someone with specialized knowledge, experience, and training in a particular field, allowing them to accurately assess and verify information or work. Their expertise helps ensure that reports, evaluations, or decisions are trustworthy and meet required standards. For investors, a qualified person provides confidence that the information they rely on is credible and properly validated.

AI-generated analysis. Not financial advice.

Vancouver, British Columbia--(Newsfile Corp. - December 5, 2025) - New Found Gold Corp. (TSXV: NFG) (NYSE American: NFGC) ("New Found Gold" or the "Company") is pleased to announce the Company has successfully completed its previously announced acquisition (the "Acquisition") of a 100% interest in certain mineral claims in Newfoundland and Labrador previously held by Exploits Discovery Corp. ("Exploits") (the "Claims"). The Claims adjoin New Found Gold's Queensway Gold Project ("Queensway" or the "Project") and increases the size of the Project by up to 31%, to a total of 230,225 hectares.

Keith Boyle, CEO of New Found Gold, commented, "With the Queensway expansion, New Found Gold has consolidated a district-scale land package encompassing over 110 kilometres of strike along two major fault zones, the Appleton and the JBP. With our focused work over the past several years on a 5 kilometre segment of the Appleton, we have outlined a significant initial mineral resource with robust preliminary economics at the AFZ Core. New discoveries at depth and along strike demonstrates the camp-scale potential at Queensway. We look forward to commencing exploration on our new landholdings, beginning with drill testing of areas immediately to the northeast and along strike from the AFZ Core."

As consideration for the Claims, the Company (i) issued 2,821,556 common shares of the Company (the "Shares") to Exploits; (ii) granted to Exploits a 1% NSR Royalty (as defined below); and (iii) within 10 business days following a positive final determination by the Supreme Court of Newfoundland and Labrador with respect to certain disputed mineral claims, will issue 725,543 Shares to Exploits ("the "Contingent Shares").

As partial consideration for the Claims, the Company granted to Exploits a 1.0% net smelter returns royalty on certain of the mineral claims (the "NSR Royalty") on the products derived from certain of the mineral licenses forming part of the Claims pursuant to a royalty agreement (the "Royalty Agreement"). For three years from the date of the Royalty Agreement, New Found Gold retains the right and option to purchase 0.5% of the NSR Royalty for a price equal to CDN$750,000.

Grant of Restricted Share Units

The Company announces it has granted 300,000 restricted share units ("the RSUs") to a director of New Found Gold, in accordance with the "5% rolling" share unit plan of the Company, with 1/3 vesting one year from the date of grant, and 1/3 vesting every year thereafter until fully vested.

Qualified Person

The scientific and technical information disclosed in this press release was reviewed and approved by Melissa Render, P. Geo., President, and a Qualified Person as defined under National Instrument 43-101. Ms. Render consents to the publication of this press release, by New Found Gold. Ms. Render certifies that this press release fairly and accurately represents the scientific and technical information that forms the basis for this press release.

About New Found Gold Corp.

New Found Gold is an emerging Canadian gold producer with assets in Newfoundland and Labrador, Canada. The Company holds a 100% interest in Queensway, as well as the recently acquired Hammerdown Operation, Pine Cove Operation and Nugget Pond Hydrometallurgical Gold Plant. The Company is currently focused on advancing Queensway to production and bringing the Hammerdown Operation into steady-state gold production.

In July 2025, the Company completed a PEA at Queensway (see New Found Gold news release dated July 21, 2025). Recent drilling continues to yield new discoveries along strike and down dip of known gold zones, pointing to the district-scale potential that covers a +110 km strike extent along two prospective fault zones at Queensway.

New Found Gold has a new board of directors and management team and a solid shareholder base which includes cornerstone investor Eric Sprott. The Company is focused on growth and value creation.

Keith Boyle, P.Eng.
Chief Executive Officer
New Found Gold Corp.

Contact

For further information on New Found Gold, please visit the Company's website at www.newfoundgold.ca, contact us through our investor inquiry form at https://newfoundgold.ca/contact/ or contact:

Fiona Childe, Ph.D., P.Geo.
Vice President, Communications and Corporate Development
Phone: +1 (416) 910-4653
Email: contact@newfoundgold.ca

Follow us on social media at https://www.linkedin.com/company/newfound-gold-corp https://x.com/newfoundgold.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statement Cautions

This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, relating to the Acquisition and the issuance of the Contingent Shares. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "interpreted", "intends", "estimates", "projects", "aims", "suggests", "indicate", "often", "target", "future", "likely", "pending", "potential", "encouraging", "goal", "objective", "prospective", "possibly", "preliminary", and similar expressions, or that events or conditions "will", "would", "may", "can", "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made, and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSXV, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include risks associated with the Company's ability to complete exploration and drilling programs as expected, possible accidents and other risks associated with mineral exploration operations, the risk that the Company will encounter unanticipated geological factors, risks associated with the interpretation of exploration results and the results of the metallurgical testing program, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration plans, the risk that the Company will not be able to raise sufficient funds to carry out its business plans, and the risk of political uncertainties and regulatory or legal changes that might interfere with the Company's business and prospects. The reader is urged to refer to the Company's Annual Information Form and Management's discussion and Analysis, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR+) at www.sedarplus.ca for a more complete discussion of such risk factors and their potential effects.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/277019

FAQ

What did New Found Gold (NFGC) announce on December 5, 2025 about Queensway?

The company completed acquisition of claims expanding Queensway by up to 31% to 230,225 hectares and issued consideration including 2,821,556 shares and a 1.0% NSR.

How many shares did New Found Gold (NFGC) issue to Exploits Discovery as part of the December 5, 2025 deal?

The company issued 2,821,556 common shares and will issue 725,543 contingent shares upon a positive court determination.

What royalty did New Found Gold grant in the Queensway acquisition (NFGC)?

New Found Gold granted a 1.0% net smelter returns royalty on certain Claims, with a right to repurchase 0.5% for CDN$750,000 within three years.

How will the Queensway expansion affect New Found Gold’s land position (NFGC)?

The acquisition increases the Project area by up to 31%, consolidating over 110 kilometres of strike on two major fault zones.

What director compensation did New Found Gold (NFGC) disclose on December 5, 2025?

The company granted 300,000 restricted share units to a director under its 5% rolling plan, vesting one third annually over three years.

Who approved the technical information in New Found Gold’s December 5, 2025 release (NFGC)?

Melissa Render, P.Geo., President, acted as the Qualified Person and approved the scientific and technical information.